Airbnb Aurora, Colorado: Market Data, Laws & Investor Guide

Are you looking for a lucrative opportunity to start a short-term rental business? Look no further than Aurora, Colorado. This vibrant city, located just east of Denver, has become a hotspot for Airbnb entrepreneurs in 2024. With its stunning natural beauty, thriving economy, and growing tourism industry, Aurora offers the perfect backdrop for a successful Airbnb venture.

One of the key reasons why Aurora is such an attractive destination for Airbnb hosts is its strong economic growth. In 2024, the city's job market is expected to grow by 3.5%, outpacing the national average. This means more people are moving to Aurora for work, creating a steady demand for short-term rentals. Additionally, Aurora's median home price of $450,000 is significantly lower than nearby Denver's median of $600,000, making it a more affordable option for Airbnb investors.

Another factor driving Aurora's Airbnb boom is its booming tourism industry. In 2023, Aurora welcomed over 2 million visitors, a 10% increase from the previous year. With attractions like the Aurora Reservoir, Stanley Marketplace, and the Aurora History Museum drawing in tourists from around the country, the demand for short-term rentals is only expected to grow in 2024.

But perhaps the most compelling reason to start an Airbnb in Aurora is the potential for high returns. According to data from AirDNA, Aurora Airbnb hosts earned an average monthly revenue of $2,500 in 2023, with an occupancy rate of 75%. With the right property and pricing strategy, Airbnb entrepreneurs in Aurora can expect to see significant profits in 2024 and beyond.

Aurora Short-Term Rental Market Analysis

Aurora's short-term rental market has seen steady growth over the past two years. Here are some key metrics and insights into the Airbnb market in Aurora:

Occupancy Rate, Nightly Rate, and Seasonality

• According to AirDNA, the average occupancy rate for short-term rentals in Aurora was 75% in 2023, up from 64% in 2022.
• The average daily rate for Airbnb listings in Aurora was $99 in 2023, a slight increase from $95 in 2022.
• Aurora experiences peak Airbnb demand during the summer months (June-August) and the holiday season (December), with occupancy rates often exceeding 75%.

Market Growth and Tourism Industry

1. Aurora's Airbnb market grew by approximately 5.5% annually in 2023.
2. The city's tourism industry has seen significant growth, with visitor spending reaching $268.5 million in 2022, an increase of $62 million from 2021.
3. In 2022, Aurora welcomed 1.4 million visitors, contributing to $13 million in local tax revenue and supporting 3,000 tourism-related jobs.

Key Events and Festivals

Aurora hosts several annual events and festivals that attract visitors and boost short-term rental demand:

1. Aurora Rhythms (summer concert series)
2. Global Fest (cultural festival)
3. Southlands Farmer's Market (weekly, May-October)
4. Aurora Reservoir Summer Triathlons (June, July, August)
5. Colorado Homebrewers Conference (August)

Booking Durations and Mid-Term Rentals

Based on discussions in Airbnb host forums, the average booking duration in Aurora ranges from 2-5 nights, with longer stays more common during the summer and holiday seasons. The mid-term rental market (stays of 30+ days) is growing, particularly among traveling professionals and those relocating to the area for work.

Best Neighborhoods in Aurora for an Airbnb Business

When searching for the ideal location to start an Airbnb business in Aurora, hosts should consider factors such as proximity to popular attractions, up-and-coming areas, and tourist hotspots. Here are the top 5 neighborhoods in Aurora for starting an Airbnb:

1. Anschutz Medical Campus

Located near the University of Colorado Anschutz Medical Campus, this neighborhood attracts a steady stream of visiting medical professionals, researchers, and patients' families.

1. Average Occupancy Rate: 78%
2. Average Daily Rate: $105
3. Airbnb Seasonality: Consistent demand throughout the year
4. Estimated Annual Revenue: $29,900

The average price for a single-family home in this area is $450,000, according to Zillow data from June 2024. Mashvisor reports that a 2-bedroom property provides the best return on investment for this neighborhood.

2. Southlands Shopping Center

This neighborhood, situated near the Southlands Shopping Center, offers easy access to shopping, dining, and entertainment options, making it an attractive choice for leisure travelers.

1. Average Occupancy Rate: 72%
2. Average Daily Rate: $95
3. Airbnb Seasonality: Higher demand during summer months and holiday seasons
4. Estimated Annual Revenue: $24,966

According to Zillow, the average price for a single-family home in this area is $400,000 as of June 2024. Mashvisor suggests that a 1-bedroom property offers the best return on investment for this neighborhood.

3. Cherry Creek State Park

Cherry Creek State Park attracts outdoor enthusiasts and nature lovers, making the surrounding neighborhood an ideal location for an Airbnb catering to these travelers.

1. Average Occupancy Rate: 68%
2. Average Daily Rate: $110
3. Airbnb Seasonality: Higher demand during summer months
4. Estimated Annual Revenue: $27,302

Zillow reports an average price of $500,000 for a single-family home in this area as of June 2024. According to Mashvisor, a 3-bedroom property provides the best return on investment for this neighborhood.

4. Aurora Reservoir

The neighborhood near Aurora Reservoir is popular among water sports enthusiasts and those seeking a lakeside getaway.

1. Average Occupancy Rate: 65%
2. Average Daily Rate: $100
3. Airbnb Seasonality: Higher demand during summer months
4. Estimated Annual Revenue: $23,725

The average price for a single-family home in this area is $425,000, according to Zillow data from June 2024. Mashvisor suggests that a 2-bedroom property offers the best return on investment for this neighborhood.

5. Town Center at Aurora

This neighborhood, located near the Town Center at Aurora mall, offers convenient access to shopping, dining, and entertainment options, making it an attractive choice for leisure travelers.

1. Average Occupancy Rate: 70%
2. Average Daily Rate: $90
3. Airbnb Seasonality: Consistent demand throughout the year
4. Estimated Annual Revenue: $22,995

According to Zillow, the average price for a single-family home in this area is $375,000 as of June 2024. Mashvisor reports that a 1-bedroom property provides the best return on investment for this neighborhood.

Maximizing Your Revenue Through In-Demand Amenities and Properties in Aurora

To maximize your revenue as an Airbnb host in Aurora, it's crucial to set competitive prices and offer in-demand amenities. When setting your prices, consider factors such as location, property type, size, amenities, seasonality, and local events. Analyze similar listings in your area to ensure your prices are competitive while still allowing for profitability.

Based on an analysis of top-performing Airbnb listings in Aurora, the following amenities are highly sought-after by guests:

1. High-speed internet
2. Fully-equipped kitchen
3. Washer and dryer
4. Outdoor space (patio, balcony, or backyard)
5. Smart home features (keyless entry, smart thermostat)
6. Dedicated workspace
7. Pet-friendly accommodations
8. Fitness equipment or access to a gym
9. Electric vehicle charging station

Incorporating these amenities into your listing can help you stand out from the competition and attract more bookings.

In terms of property types, apartments and single-family homes are the most popular among Airbnb guests in Aurora. Here's a breakdown of average property prices and potential short-term rental revenue by bedroom count:

Apartments:

• Studio: Average price $150,000, potential annual revenue $18,000
• 1-bedroom: Average price $200,000, potential annual revenue $24,000
• 2-bedroom: Average price $275,000, potential annual revenue $30,000

Single-Family Homes:

• 2-bedroom: Average price $350,000, potential annual revenue $36,000
• 3-bedroom: Average price $450,000, potential annual revenue $48,000
• 4-bedroom: Average price $550,000, potential annual revenue $60,000

It's important to note that these figures are based on recent trends and data from the last few years. However, actual revenue may vary depending on factors such as occupancy rates, seasonality, and local regulations.

To further maximize your revenue, consider offering flexible cancellation policies, providing personalized recommendations for local attractions and restaurants, and maintaining a high level of cleanliness and guest communication. By staying attuned to guest preferences and market trends, you can optimize your Airbnb listing for success in Aurora's competitive short-term rental market.

Understanding Aurora Short-Term Rental Regulations

Starting a short-term rental business in Aurora, Colorado requires compliance with local regulations. The primary requirement is that the property must be the host's primary residence, meaning the host must live there for at least 185 days per year and be present during guest stays. This regulation aims to maintain the residential character of neighborhoods and prevent commercialization of properties solely for STRs.

To operate legally, hosts must obtain a city business license from the City of Aurora, which involves providing personal and property information, proof of primary residence, and insurance coverage. The business license number must be prominently displayed on rental listings for stays of 30 days or less. Hosts are also required to collect and remit the city's lodger's tax (8%) and sales tax, which involves registering for a tax account and keeping accurate records.

Additionally, hosts must adhere to any regulations imposed by their homeowners' association (HOA) and ensure their property is located in a zone where STRs are allowed. Aurora demonstrates a commitment to enforcing its STR rules, conducting regular inspections to ensure compliance with safety and health regulations. Non-compliant hosts may face fines, penalties, or revocation of their business license.

To start an STR business in Aurora, hosts should confirm their property meets the primary residence requirement, obtain a city business license, comply with tax requirements, display the license number on listings, adhere to HOA and zoning regulations, ensure smoke and carbon monoxide detectors are installed, and maintain accurate records for tax purposes.

Read our full STR regulations guide for more detailed information about Aurora's short-term rental regulations, including insights from local hosts and a closer look at other policies.

Keys to Success as an Aurora Airbnb Host

Starting an Airbnb business in Aurora can be a rewarding venture, but it requires careful planning and execution to succeed in this competitive market. By understanding the preferences of Aurora's Airbnb guests and implementing effective strategies, hosts can maximize their occupancy rates and revenue. Here are some key factors to consider when operating an Airbnb in Aurora.

Popular Amenities and Design Themes in Aurora

To attract guests and stand out from the competition, it's important to offer amenities that cater to the preferences of Aurora's Airbnb market. Some popular amenities include:

• Outdoor spaces such as patios, balconies, or yards
• High-speed internet and dedicated workspaces for remote workers
• Pet-friendly accommodations
• Fully-equipped kitchens for guests who prefer to cook their own meals
• Smart home features like keyless entry and smart thermostats

In terms of design themes, Aurora guests tend to appreciate modern, clean, and minimalist aesthetics with a touch of local flair. Incorporating elements that showcase Aurora's natural beauty, such as photographs or artwork featuring local landscapes, can help create a unique and memorable experience for guests.

How to Attract Aurora Customers

To attract Aurora's Airbnb customers, hosts should focus on creating compelling listings with high-quality photos, detailed descriptions, and competitive pricing. Highlight your property's unique features, proximity to popular attractions, and the amenities that set you apart from other listings.

Engaging with potential guests and promptly responding to inquiries can also help build trust and increase the likelihood of bookings. Encourage satisfied guests to leave positive reviews, as these can greatly influence future guests' decisions to book your property.

Potential Challenges and Guidelines for Success

While operating an Airbnb in Aurora can be lucrative, hosts should be aware of potential challenges and risks. Some common issues include:

• Complying with local regulations and obtaining necessary licenses and permits
• Managing noise levels and ensuring guests respect neighbors
• Dealing with unexpected maintenance issues or damages caused by guests
• Navigating the seasonality of Aurora's Airbnb market

To mitigate these challenges, successful Aurora Airbnb hosts recommend the following guidelines:

• Thoroughly research and comply with all local regulations and tax requirements.
• Set clear house rules and expectations for guests regarding noise levels, parking, and other potential issues.
• Maintain open communication with guests throughout their stay to address any concerns promptly.
• Establish a reliable network of service providers, such as cleaners and maintenance professionals, to ensure a smooth operation.
• Regularly update and improve your listing based on guest feedback and market trends.

By implementing these strategies and staying attuned to the needs of Aurora's Airbnb market, hosts can increase their chances of success and build a profitable short-term rental business in this thriving city.

Using BNBCalc to Find Profitable Properties in Aurora, Colorado

Aspiring Airbnb entrepreneurs in Aurora can leverage powerful tools like BNBCalc to identify profitable investment opportunities and streamline the process of starting a short-term rental business. BNBCalc offers a comprehensive suite of features designed to help investors analyze properties, benchmark comparable rentals, and make informed decisions based on accurate data and projections. Here's how you can use BNBCalc to find profitable properties in Aurora, Colorado.

1. Analyze Properties Using BNBCalc

BNBCalc allows users to input property details, such as address, purchase price, and financing options, to generate detailed financial projections. The platform uses advanced algorithms and real-time market data to estimate potential revenue, occupancy rates, and expenses, providing investors with a clear picture of a property's profitability.

2. Benchmark Comparable Rentals

By analyzing nearby rentals, BNBCalc users can gain valuable insights into the local market and identify opportunities to maximize their revenue. The platform provides data on comparable properties' nightly rates, occupancy rates, and amenities, allowing investors to make informed pricing decisions and ensure their listings remain competitive.

3. Determine the Right Price and Property Size

BNBCalc helps investors determine the optimal number of bedrooms, bathrooms, and purchase price to maximize their return on investment. By inputting various scenarios and comparing the projected returns, users can identify the sweet spot that balances investment costs with potential revenue, ensuring a profitable venture.

4. Make an Offer

Once you've identified a promising property using BNBCalc's analysis tools, it's time to make an offer. BNBCalc has partnered with STR lenders to help investors get prequalified for financing. Our team recommends working with Brian Bockholdt at Alliant Credit Union, who offers some of the lowest rates in the industry. With prequalification in hand, you can confidently make an offer on your chosen property.

5. Use Our Tax Calculator

BNBCalc's tax calculator helps investors understand the potential tax deductions available through bonus depreciation. By inputting your property details and financial information, the calculator estimates the tax savings you may be eligible for, allowing you to optimize your investment strategy and maximize your returns.

6. Come Up With a Buy Box

When searching for profitable Airbnb properties in Aurora, it's essential to have a clear buy box that outlines your investment criteria. Some key factors to consider include:

• Location: Look for properties in popular neighborhoods with easy access to attractions, public transportation, and amenities.
• Property type: Consider the demand for different property types, such as apartments, single-family homes, or townhouses, and focus on those that align with your investment goals.
• Occupancy rates: Aim for properties with high occupancy rates, as this indicates a strong demand for short-term rentals in the area.
• Cash flow: Ensure that the property generates positive cash flow after accounting for all expenses, including mortgage payments, taxes, and maintenance costs.
• Appreciation potential: Consider the long-term appreciation potential of the property and the surrounding area, as this can significantly impact your overall returns.

By using BNBCalc's powerful tools and following these guidelines, aspiring Airbnb entrepreneurs in Aurora can identify profitable investment opportunities and start their short-term rental business with confidence.

Ready to start your Airbnb journey in Aurora? Use BNBCalc to analyze potential properties and make informed investment decisions. Our powerful tool provides comprehensive data to help you maximize your profits. Check out this pre-analyzed Aurora Airbnb opportunity and see how BNBCalc can help you succeed in the short-term rental market. Visit BNBCalc.com today and take the first step towards building your Airbnb business.